This document summarizes Bayer's Q2 2012 results. It saw record sales but lower reported EBIT due to special charges. All business segments saw strong growth. Full year 2012 guidance was raised significantly, expecting 4-5% organic sales growth and around a 10% increase in core EPS. Regional performance was led by the US and emerging markets. Cash flow was down year-over-year but net debt decreased. Outlooks for each subgroup were also raised for the fiscal year.
2. Disclaimer
This presentation may contain forward-looking statements based on current
assumptions and forecasts made by Bayer Group or subgroup management.
Various known and unknown risks, uncertainties and other factors could lead to
material differences between the actual future results, financial situation,
development or performance of the company and the estimates given here.
These factors include those discussed in Bayer’s public reports which are
available on the Bayer website at www.bayer.com.
The company assumes no liability whatsoever to update these forward-looking
statements or to conform them to future events or developments.
Page 2 • Investor Handout • Q2 2012
3. 2nd Quarter 2012 –
Strong Operating Performance
Delivered record sales, lower reported EBIT due to high special
charges but nicely improved adj. earnings
Significant positive currency effects
Strong operating momentum broadly based:
HealthCare with best quarter ever
CropScience at new record for 2nd quarter performance
MaterialScience with record quarterly sales and highest adj.
EBITDA for a second quarter since 2007
Full year 2012 financial outlook raised significantly: 4-5% organic
growth and core EPS up ~10%
Page 3 • Investor Handout • Q2 2012
4. 2nd Quarter 2012 –
Strong Operating Performance
Sales EBIT EBITDA Core EPS
in € million adjusted*
% currency & portfolio adj. in € million in € million in €
10,177 2,172
9,252
2,035
1.47
1.29
1,273
750
Q2’11 Q2’12 Q2’11 Q2’12 Q2’11 Q2’12 Q2’11 Q2’12
+5% -41% +7% +14%
*before special items
Page 4 • Investor Handout • Q2 2012
5. Regional Performance–
Growth Led By USA and Emerging Economies
In € million, ∆% yoy Fx adjusted
Q2’12 Group Sales by Region Emerging Economies
Emerging +6%
USA
Economies¹ ~1,510
+10%
+7%
22%
36% +14%
~1,020
+10%
31% ~700
Western 11% -4%
Others²
Europe
+7% ~460
-2%
Group €10,177m; +5%
Emerging Latin Eastern Africa &
Asia³ America Europe Middle East
¹ Emerging economies include: Latin America, Asia w/o Japan, Australia,
New Zealand, Africa and Middle East incl. Turkey, Eastern Europe
Page 5 • Investor Handout • Q2 2012 ² Others = Japan, Australia, New Zealand, Canada
³ Emerging Asia = Asia w/o Japan, Australia, New Zealand
6. 2nd Quarter 2012 –
Cash Flow And Net Debt Development
Cash Flow in € million, Net Debt in € billion
Q2’12 Cash Flow Net Debt Development
GCF NCF Invest- oFCF +€1,060m
cont. ments
7.9
6.9
1,226 1,369 444 925
∆%
y-o-y -20 -11 +49 -25
Q1´12 Q2´12
Page 6 • Investor Handout • Q2 2012
10. Fiscal 2012 –
Group Outlook Raised Significantly
Sales ∆ Fx & portf. adjusted, EBITDA before special items
∆ vs. 2012E 2012E
2011
2010 Original Actual
~3% or 4-5% to
Sales €36.5bn +6%
~€37bn €39-40bn*
High single-digit
Adj. EBITDA €7.6bn +7% Slightly improve
% increase
Core EPS €4.83 +15% Slightly improve ~10%
*Assuming Fx rates end of Q2’2012
Page 10 • Investor Handout • Q2 2012 Outlook depends on specific planning assumptions as detailed in the Annual/Quarterly Report
11. Fiscal 2012 –
Guidance By Subgroup
Raised:
HealthCare Sales to increase 3% to 4%.
Adj. EBITDA to grow by mid- to high-single-digit percentage.
Raised:
Pharma Sales to increase slightly.
Adj. EBITDA to grow mid-single-digit percentage.
Raised:
Consumer
Sales to increase mid-single-digit percentage.
Health Adj. EBITDA to grow high-single-digit percentage.
Raised:
CropScience Sales to increase by ~10%.
Adj. EBITDA to grow by ~20%.
Unchanged:
Sales and adj. EBITDA to remain level with prior year.
MaterialScience
Q3’12: Aspire to achieve sales and adj. EBITDA on good
Q2’12 level.
Sales ∆ Fx & portf. adjusted, EBITDA before special items
Page 11 • Investor Handout • Q2 2012 Outlook depends on specific planning assumptions as detailed in the Annual/Quarterly Report